Montana registration crack-down

>> Even still, after six months the LLC can transfer the car to the individual and no sales tax will be due.

Well, I doubt that will work. When you transfer the car to the individual from the LLC, it's an official sale and the clock starts again. They want their pound of flesh.

 

Ah, yes, you are correct. It would have to stay with the Montana LLC.

 

I would think not since the particular state where the car was garaged for over 30 days would contend their state laws would come into play and the car must be registered in that particular garaging state. The garaging state is contending that once a particular set of circumstances have been met then their state laws are governing for their state and supersede the Montana vehicle registration laws.

 

Yes, but in this scenario those 30 days never happen in any state.

 

Texas has said if the all the Montana LLC owns is a car sitting in the garage of a Texas resident, they will ignore the Montana LLC.

 

Does your insurance company ask where the vehicle is principally garaged?

 

I read that some companies like Hagerty don't care about Montana registration, not sure if this is true.

 

Well usually in those situations the burden of proof to the court would be for you to prove the car was not in the state for 30 days for any one period - Good luck with that.

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Yes but usually the insurance company tends to accept what the client or agent tell them unless you have a couple of losses in a state not declared as the garaging place. This has been my general experience as a broker for 39 years.

 

Great thread.
LLC a business that owns motor vehicle.
No income just losses, with a possible gain at sale.

Question: The LLC in Montana, does it have to file a Federal & Montana LLC income tax return?

 

Not correct in CA.

 

I believe the way around the sale from the LLC to an individual is to origionally register the car to the LLC OR the individual. This has worked for me when I traded the car in. Since the car is registered to both and OR is in title there is no sale. That also means that if you have a personal insurance auto policy you must name the LLC as additional insured. If you have a commercial insurance policy you need to also name the individual as a additional insured. Also make sure if you have a personal umbrella/Escess liability policy, it will be excess over both the named insured as well as the additional insureds.

 

I have a few LLCs in Wyoming that do actual, profitable business. Moving one that has no PA clients to Montana is not a problem.

 

I already document my travels for the IRS with EZPass logs, receipts for overnight parking, hotel stays, etc. etc. That part is trivial since I'm already doing it. Besides, the 30 day thing doesn't even appear to apply to PA.

 

Different story. What Texas and other states are gunning for are Montana LLCs that only own one personal-use asset, e.g., RV, boat, bus, or a car.

 

Search wsbtv Wealthy Georgians with Exotic cars accused of cheating local tax payers.

Man I’m itching to say more... let’s just say I’m back in Florida and will never become a resident of Georgia. Makes me sick.


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Montana says that having an LLC registration in Montana satisfies the residency requirements for their state. So yah. It’s like $500 to setup an LLC and register the LLCs car.

Just wait for it. CA will change the law from 30 days to 10.

Also it’s a misnomer that only rich people can afford more than one residence.



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Hmmm. GPS logs....


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That doesn't matter, if you actually live in another state, you meet the residency requirement of that state.

 

Picture of a Pagani popped up recently with montana tags, said the TAVT would be the cost of a new Huracan.

sjd

 

Yeah that might work assuming one has the disipline to keep them up and w/o any gaps. Not sure that most folks are that disiplined in their day to day activities.

 

Channel 2 needs a talking to here in the ATL, the morning news ad is about them "exposing the bad guys" and helping GA collect millions in lost tax revenue. "We were there when mansions were raided..."

sjd

 

I took these photos in July at the Maranello Palace (Italy) still can’t believe it. Apparently they caught on to the idea in Europe too. Wrong car for the plate but whatever hahaha
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https://eservices.drives.ga.gov/_/

Here's some fun. You can get an idea of how it works by clicking on a dealer vs private sale, and if you traded a car in or not. Find a VIN online for some car for sale otherwise it'll take the original MSRP on whatever you're looking for.

sjd

 

How is that the wrong car for the plate? That's a Bentley Continental GT3R...I'm personally not a fan of them, but the plate makes sense. I love the actual GT3 race car though...just not the street-named version.